Proposal for a Council Regulation imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of certain cathode-ray colour television picture tubes originating in India and the Republic of Korea, and terminating the anti-dumping proceeding in respect of imports originating in Lithuania, Malaysia and the People's Republic of China
Date: 2000-09-29
Institutions: European Commission
Subjects: anti-dumping duty, anti-dumping legislation, originating product, television equipment, third country

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 29.09.2000
COM(2000) 609 final

Proposal for a

COUNCIL REGULATION

imposing a definitive anti-dumping duty and collecting definitively the provisional duty
imposed on imports of certain cathode-ray colour television picture tubes originating in
India and the Republic of Korea, and terminating the anti-dumping proceeding in
respect of imports originating in Lithuania, Malaysia and the People’s Republic of
China

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 29 July 1999, the Commission opened an anti-dumping investigation with regard to
imports into the Community of 14-inch cathode ray colour television picture tubes (CPTs)
originating in India, Lithuania, Malaysia, the People’s Republic of China ("China") and the
Republic of Korea1 ("Korea”).

The Commission, by Regulation (EC) No 837/20002, imposed provisional anti-dumping
duties on imports of CPTs originating in India, Malaysia, China and Korea, falling within CN
code ex 8540 11 11. In the same Regulation, it was provisionally concluded that no anti-
dumping duty should be imposed on imports originating in Lithuania, because the dumping
in Article 9(3) of Council
margin found in this case was below the 2% threshold set
Regulation (EC) No 384/963.

After the imposition of provisional anti-dumping duties the Commission services deepened
the dumping and injury analysis. The attached proposal for a Council Regulation imposing a
definitive anti-dumping duty is based on the definitive findings on dumping, injury, causation
and Community interest.

The measures proposed are ad valorem duties to be applied on imports of CPTs originating in
India (20.5%) and Korea (19.7%). The proceeding with respect to Lithuania and Malaysia, for
which the dumping was found to be below the “de minimis” level, and with respect to China,
for which the market share held by the Chinese imports was found to be below the de minimis
threshold, should be terminated.

It is therefore proposed that the Council adopt the attached proposal for a Regulation which
should be published in the Official Journal no later than 27 October 2000.

1

2

3

OJ C 216, 29.7.1999, p. 3.
OJ L 102, 27.4.2000, p. 15.
OJ L 56, 6.3.1996, p.1, as last amended by Council Regulation (EC) No 905/98, OJ L 128, 30.4.1998,
p. 18/19.

2

Proposal for a

COUNCIL REGULATION

imposing a definitive anti-dumping duty and collecting definitively the provisional duty
imposed on imports of certain cathode-ray colour television picture tubes originating in
India and the Republic of Korea, and terminating the anti-dumping proceeding in
respect of imports originating in Lithuania, Malaysia and the People’s Republic of
China

THE COUNCIL OF THE EUROPEAN UNION

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection
against dumped imports from countries not members of the European Community1, and in
particular Article 9 thereof,

Having regard to the proposal submitted by the Commission after consulting the Advisory
Committee,

Whereas:

A. Procedure

1. Provisional measures

(1)

By Commission Regulation (EC) No 837/20002
(“the provisional Regulation”)
provisional anti-dumping duties were imposed on imports into the Community of
cathode-ray colour television picture tubes with a diagonal measurement of the screen
(i.e. the active part of the picture tube measured in a straight line) exceeding 33 cm but
not exceeding 38 cm, with a screen width/height ratio less than 1,5 and with a pitch
(i.e. the gap between two lines of the same colour at the centre of the screen) of not
less than 0,4 mm ("CPTs"), originating in India, Malaysia, the People's Republic of
China ("China") and the Republic of Korea ("Korea"), falling within CN code ex 8540
11 11 (TARIC code 8540 11 11 * 94).

(2)

Considering that the dumping margin found in the case of Lithuania was below the 2%
threshold set in Article 9(3) of Council Regulation (EC) No 384/96 (“the Basic
Regulation”), no provisional measures were imposed in respect of this country.

2. Subsequent procedure

1

2

OJ L 56, 6.3.1996, p.1. as last amended by Council Regulation (EC) No 905/98, OJ L 128, 30.4.1998,
p.18/19.
OJ L 102, 27.4.2000, p.15.

3

(3)

(4)

(5)

Following the imposition of provisional anti-dumping duties, parties received
disclosure of facts and considerations on which the the provisional Regulation was
based. Some parties submitted comments in writing. All interested parties who so
requested were granted an opportunity to be heard by the Commission. Parties were
informed of the essential facts and considerations on the basis of which it was intended
to recommend the imposition of a definitive anti-dumping duty and the definitive
collection, at the level of this duty, of amounts secured by way of the provisional duty.
They were also granted a period within which to make representations subsequent to
this disclosure.

The oral and written comments submitted by the interested parties were considered
and, where appropriate, taken into account for the definitive findings.

The Commission continued to seek all information it deemed necessary for the
purpose of its definitive findings.

B. PRODUCT UNDER CONSIDERATION AND LIKE PRODUCT

(6)

As the only comment received under this heading following disclosure of the
provisional findings concerned the product manufactured by the Chinese exporting
producer, and as it is considered appropriate to terminate the proceeding with respect
to this country (see recital 85 below), the contents and conclusions of recitals 7 to 10
of the provisional Regulation are hereby confirmed.

C. DUMPING

1. Lithuania

1.1 Normal value

(7)

The complainant alleged that the depreciation and R&D costs reported by the sole
Lithuanian exporting producer were too low. However, it did not provide any evidence
in support of this claim. The costs reported were nonetheless reviewed and found not
to be understated. The argument raised by the complainant was therefore rejected and
the findings set out in recital 35 of the provisional Regulation are therefore confirmed.

1.2 Export price and comparison

(8)

No comments were made under these headings. The findings set out in recitals 36 and
37 of the provisional Regulation are therefore confirmed.

1.3 Dumping margin

(9)

The dumping margin (1,3%) established in recital 38 of the provisional Regulation is
therefore confirmed as de minimis.

2. Malaysia

2.1 Normal value and export price

(10) As no new information was submitted, the findings set out in recitals 11 to 13 of the

provisional Regulation are confirmed.

4

2.2 Comparison

(11) One of the two Malaysian exporting producers claimed that an adjustment to normal
value should be made with regard to after-sales costs. This claim was examined and it
it was
was found appropriate to grant an adjustment
considered more appropriate to use, in respect of the comparison between the normal
value and the export price of one exporting producer, the same methodology (i.e.
monthly average exchange rates) already applied at the provisional stage in respect of
the other exporting producer.

in this respect. Moreover,

(12) With the exception of the above, the findings set out in recital 14 of the provisional

Regulation are confirmed.

2.3 Dumping margin

(13) As a result of the changes referred to at recital 11 above, the dumping margins were

definitively established as follows:

- Samsung Electron Devices (M) SDN.BHD: 0,7%,

- Chungwha Picture Tubes (M) SDN.BHD: 4,5%.

(14) With regard to imports originating in Malaysia, it should be noted that the two
exporting producers above represent the entirety of exports originating in this country.
In order to assess whether, on a country-wide basis, the dumping margin was de
minimis, a weighted average country-wide dumping margin was established. It was
found that this margin was de minimis because of the weight of Samsung's exports as
compared to Chungwha's exports. In view of the country-wide de minimis dumping
margin, Chungwha's low dumping margin and the overall low impact of imports from
Malaysia, it has been concluded that the investigation should be terminated without
the adoption of protective measures with regard to imports originating in Malaysia, in
accordance with Article 9(3) of the Basic Regulation.

3. China

(15) After having examined the comments made by interested parties, it is confirmed that
dumping in respect of China exists at significant levels. However, in view of the
conclusions reached at recital 35 below on the de minimis import volume originating
in China, and in view of the termination of the proceeding with respect to China (see
recital 85 below) it was not deemed necessary to set out the determination concerning
dumping.

4. India

(16)

It is recalled that no exporting producer from India cooperated in the investigation and,
therefore, the findings had to be made on the basis of facts available.

4.1 Normal value

(17) No comments were received under this heading. The calculation of normal value was

revised, in order to reflect the modifications referred to at recital 11 above.

4.2 Export price and comparison

5

(18) No comments were received under these headings. The findings set out in recitals 18

and 19 of the provisional Regulation are therefore confirmed.

4.3 Dumping margin

(19) As a result of the changes to normal value referred to at recital 17 above, the dumping

margin was definitively established as follows:

- All companies: 20,5%.

5. Korea

(20)

It is recalled that no exporting producer from Korea cooperated in the investigation
and, therefore, the findings had to be made on the basis of facts available.

5.1 Normal value

(21) No comments were received in this respect. The calculation of normal value was

revised, in order to reflect the modifications referred to at recital 11 above.

5.2 Export price and comparison

(22) No comments were received under these headings. The findings set out in recitals 23

and 24 of the provisional Regulation are therefore confirmed.

5.3 Dumping margin

(23) As a result of the changes to normal value referred to at recital 21 above, the dumping

margin was definitively established as follows:

- All companies: 19,7%.

D. DEFINITION OF THE COMMUNITY INDUSTRY

(24)

Since no comments were received regarding the definition of the Community industry,
the conclusions of recitals 39 and 40 of the provisional Regulation are hereby
confirmed.

E. INJURY

1. Consumption of CPTs in the Community

(25) After the imposition of provisional measures the data on consumption as established in
the provisional Regulation had to be amended to ensure in particular that the available
data for companies located in the Community and related to exporting producers in the
countries concerned were included. The new findings confirmed the decline in
consumption of CPTs in the Community (see recital 45 of the provisional Regulation)
as follows:

6

Table 1 Consumption of CPTs in the Community

1995

1996

1997

1998

IP

Units

Index 1995 =100

Index 1997= 100

6.717.805 5.882.421 4.992.089 4.954.292 4.704.257

100

88

74

100

74

99

70

94

Source: Data submitted by the Community industry and by Community operators
related to exporting producers; EUROSTAT

(26) Overall, the Community market decreased by 30% in terms of volume during the
period considered. It should be noted that the main decrease took place in the period
1995 to 1997 (-26%). However, as it can likewise be seen from the above table,
consumption in the Community gained stability as from 1997. Indeed, consumption
remained at the same level in 1997 and 1998 followed by a slight decrease of 5%
during the IP.

(27)

It is recalled that the main decrease of Community consumption is attributable to the
fact, that in the first part of the period considered, part of the production of 14-inch
colour television sets ("CTVs") in the Community has been transferred to certain
Central and Eastern European Countries (CEEC) (see recital 46 of the provisional
Regulation). The effects of the relocation process are examined in recitals 63 to 65
below.

2. Imports of CPTs into the Community from the countries concerned

2.1 Lithuania and Malaysia: de minimis dumping margin

(28)

The investigation confirmed that the margin of dumping established for Lithuania was
de minimis. In addition, as explained in recital 14 above, the weighted average margin
of dumping established for Malaysia, at the definitive stage was also found to be
below the de minimis threshold.

2.2 China: negligible imports

(29) One producer located in China claimed to be the only producer in the country and to
have sold a negligible volume of CPTs for export to the Community during the
investigation period. In addition, it claimed that the discrepancy between its sales
volume for export to the Community and the EUROSTAT import statistics was due to
the fact that the CN code used for CPTs in these statistics also included other CPTs
with dimensions above and below 14-inch, i.e. these not covered by this proceeding.
In this context, it pointed out that the Community industry had a joint venture with a
company located in China and that this might also explain the above discrepancy.

(30)

It also claimed that its actual sales volume for export to the Community was below the
de minimis threshold, on the basis that the level of consumption established by the
Commission at provisional stage (see recitals 41 to 44 of the provisional Regulation)
was highly imprecise, and requested that the investigation should be terminated with
respect to China.

7

(31)

In order to examine the above claims, the Commission examined the Chinese export
statistics, requested information from the European Union Delegation in China and
investigated data submitted by the Community industry.

(32) According to the Chinese statistics the export volume to the Community was even
higher than that reported in the EUROSTAT statistics. However, this was explained by
the fact that the relevant statistics covered different types of CPTs including those not
covered by this proceeding.

(33)

The Community industry provided information on the joint venture it had in China. On
this basis, it was found that this joint venture did not produce products covered by the
CN code concerned but other display components. As regards the discrepancy between
the EUROSTAT import statistics and the import figures declared by the Chinese
exporting producer, it should be noted that, as mentioned above, the facts available do
not exclude that CPTs other than the product concerned were exported from China to
the Community.

(34)

Furthermore, the investigation did not identify any other Chinese exporter of the
product concerned than the abovementioned company.

(35) Based on these considerations, and taking into account the fact (a) that the volume of
imports from China has significantly decreased during the period considered (83%),
(b) that the CN code for the product concerned also includes products not covered by
the present investigation and that therefore the EUROSTAT import statistics may not
necessarily accurately reflect the imports of the product concerned from China, (c) that
the volume of imports declared by the Chinese producer in its questionnaire response
was below the de minimis threshold in Article 5(7) of the Basic Regulation and (d) that
there was no information to suggest that the above Chinese producer was not the only
Chinese manufacturer to sell the product concerned for export to the Community, it
was found appropriate to consider that the market share held by Chinese imports was
below the de minimis threshold.

2.3 India and Korea

(36) Consequently, given the conclusions reached in recital 28 above concerning Lithuania
and Malaysia, and recital 35 concerning China, only the imports from the remaining
two countries, India and Korea, were analysed in the remaining injury assessment and
are referred to as imports from the "countries concerned" hereafter.

2.4 Cumulative assessment of imports from countries concerned

2.4.1 Volume of imports

(37)

The import volumes originating in the countries concerned developed as follows:

Table 2 Import volumes from the countries concerned in the Community

1995

1996

1997

1998

IP

Total units

806.188

318.471

126.559

483.361

494.254

Index 1995 =100

Index 1997 = 100

100

40

16

100

60

382

61

391

8

Source: EUROSTAT

(38) Overall, the volume of imports from the countries concerned decreased by 39% during
the period considered. The above table shows that dumped imports, while decreasing
between 1995 and 1997 (-84%), rose again significantly as from 1997 towards the IP
(+291%).

2.4.2 Market share of imports

(39)

In view of the revised consumption figures the market share held by dumped imports
from the countries concerned in the Community developed as shown below:

Table 3 Market share of imports from the countries concerned in the Community

1995

1996

1997

1998

IP

12,0% 5,4%

2,5% 9,8%

10,5%

Index 1995 = 100
Index 1997= 100

100

45

21
100

81
385

88
414

Source: Questionnaire replies of Community industry and EUROSTAT

(40)

The above table shows that while the market share decreased during the period 1995 to
1997 by 9,5 percentage points, it increased by 8 percentage points in the period 1997
to the IP.

2.4.3 Average price of imports

(41)

It is recalled that according to the conclusions reached in recital 55 of the provisional
Regulation the average import price for CPT's originating in India, Malaysia, China
and Korea already showed a declining trend (-11% in the period considered and -19%
in the period 1997 to the IP). After the exclusion of Malaysia and China it was found
that the price developments were more pronounced:

9

Table 4 Average import prices from the countries concerned in the Community

1995

1996

1997

1998

IP

- ECU/unit

39,36

42,15

45,27

34,85

31,85

Index 1995 =100

100

107

Index 1997= 100

Source: EUROSTAT

115

100

89

77

81

70

From 1995 up to the IP, the sales prices charged by the exporting producers concerned
on the Community market decreased by 19%. The decreasing trend is even more
severe looking at the development between 1997 and the IP when the average import
price fell by 30%. This situation occurred together with the 291% increase in import
volume.

In addition, between 1997 and the IP the average import price decreased much more (-
30%) than the average Community industry price (-19%).

2.5 Price undercutting

(42)

Since the above analysis of
the imports concerned has no impact on price
undercutting, the conclusions in recital 59 of the provisional Regulation are confirmed
in respect of India and Korea. The results of the comparison showed that the average
price undercutting margins, expressed as a percentage of the Community industry's
average selling prices, were 14,7% for India and 10,8% for Korea.

2.6 Conclusion

(43) Based on the above facts and considerations, it was found that the volume of dumped
imports originating in the countries concerned developed in two steps. Between 1995
and 1997, imports significantly decreased. However, during the period 1997 to the IP
they recovered and increased by 291%. As regards market share a similar trend was
established. The market share of imports from the countries concerned decreased
increased by 8
during the period 1995 to 1997 by 9.5 percentage points, but
percentage points in the period 1997 to the IP. Similarly,
import prices, which
increased by 15% until 1997 subsequently decreased by 30%.

it

3. Economic situation of the Community industry

(44) No comments were received regarding the provisional injury analysis which indicated
that most of the economic indicators pertaining to the Community industry followed a
significant decreasing trend (recitals 60 to 69 and 72 to 79 of the provisional
Regulation). However,
in view of the change in the Community
consumption, the findings with respect to the situation of the Community industry are
outlined below.

in particular

It should be noted that the decreasing trend of the economic indicators pertaining to
the Community industry was particularly significant in the period 1997 to the IP.

10

As stated in recital 60 of the provisional Regulation, given that only one producer
constitutes the Community industry, the data relating to the Community industry has
been indexed in order to preserve the confidentiality of the data submitted in
accordance with Article 19 of the Basic Regulation. It should also be noted that all
indicators explicitly listed in Article 3 (5) of the Basic Regulation were examined.
Those which where found relevant are set out below.

3.1 Production

(45)

It is recalled that the Community industry CPTs production increased by 9% during
the period considered (see recital 64 of the provisional Regulation). It should also be
pointed out that in a time when CTVs production was relocated to certain CEEC, the
Community industry maintained its CPT production in the Community.

3.2 Sales volume, average sales prices and profitability in the Community

(46)

It is recalled that the Community industry lost 55% of sales volume during the period
considered and 26% during the period from 1997 to the IP (see recital 66 of the
provisional Regulation). During the same period, consumption decreased by 30% and
6% respectively. It is stressed that the main decrease in consumption took place in the
period 1995 to 1997 (-26%), at the time when part of the production of CTVs in the
Community has been partly transferred to CEEC, whereas from 1997 to IP
consumption remained by and large stable. Consequently the fall in the Community
industry’s sales was much higher than the decrease in consumption.

(47) As indicated in recital 68 of the provisional Regulation, the investigation showed that
prices charged by the Community industry to unrelated customers decreased by 21%
during the period considered but the main decrease occurred between 1997 and the IP
(-19%), as prices were stable in the period 1995 to 1997. Thus the main price decrease
of the Community industry occurred at a time when consumption was relatively stable
(decrease of 6% in the period 1997 to the IP) while prices of the Community industry
were stable when consumption significantly decreased (-26% in the period 1995 to
1997).

(48)

In addition profitability of the Community industry was negative. As indicated in
recital 75 of the provisional Regulation around 4 percentage points of profit were lost
during the period considered.

3.3 Market share in the Community

(49) On the basis of the revised consumption figures the market share held by the

Community industry developed as follows:

Table 5 Market share held by Community industry

1995

1996

1997

1998

Index 1995 = 100

Index 1997= 100

100

107

83

100

64

77

IP

65

78

Source: Questionnaire reply of the Community industry and EUROSTAT

11

(50)

The Community industry lost 15,5 percentage points of market share during the period
considered instead of 6 percentage points as provisionally established (see recital 71 of
the provisional Regulation). The main decrease in market share (-7,9 percentage
points) occurred in the period 1997 to the IP when dumped imports surged (+291%)
and gained considerable market share (+8 percentages points).

4. Conclusion on injury

(51)

(52)

(53)

It is recalled that during the period considered sales prices of the Community industry
decreased by 21%, profitability was negative (loss of around 4 percentage points of
profit), sales volume decreased by 55% (see recital 81 of the provisional Regulation)
and the loss of its market share was 15,5 percentage points. The average price of
dumped imports, which has been consistently lower than that of the Community
industry during the period considered, was around 12% lower than the Community
industry's average price during the IP.

The volume of dumped imports decreased significantly in the period 1995 to 1997, it
then significantly increased by 291% in the period 1997 to the IP. This increase
coincided with a 6% drop in consumption between 1997 and the IP. With regard to the
average import price it should be noted that in the period 1995 to 1997 an increase of
15% was established whereas between 1997 and the IP average import prices
decreased by 30%.

the economic situation of the
The more detailed investigation confirmed that
Community industry deteriorated especially in the period between 1997 and the IP
when the surge of dumped imports took place, and over which time the Community
industry's production decreased by 15% (see recital 64 of the provisional Regulation),
its sales prices by 19% and profitability was likewise significantly reduced,
employment decreased by 13%.

(54)

In the light of the foregoing, in particular the decrease in sales prices and profitability,
the conclusion that the Community industry has suffered material injury within the
meaning of Article 3 of the Basic Regulation is confirmed.

F. CAUSATION

1. Introduction

(55)

(56)

In accordance with Article 3(6), (7) of the Basic Regulation, it was examined whether
the material injury suffered by the Community industry had been caused by the
dumped imports from the countries concerned.

The effect of known factors other than the dumped imports was also examined in order
to ensure that injury caused by these other factors is not wrongly attributed to the
dumped imports from the countries concerned.

2. Effect of the dumped imports

(57) After the exclusion of Malaysia and China it was found that the volume of dumped
imports increased considerably during the period 1997 to the IP (+291%). Their
market share increased by 8 percentage points. The recovery of imports coincided with
a time of stable consumption. At
the same time a decrease in the Community
industry’s sales (-26%) and market share (-7,9 percentage points) took place.

12

(58)

The prices charged by the countries concerned in the Community market had
decreased by 19% during the period considered. The most significant decrease took
place between 1997 and the IP (-30%). The Community industry’s prices decreased by
21% during the period considered, the main decrease taking place in the period 1997
to IP (-19%). The price undercutting found during the IP was around 12% on average.
This led to a deterioration of the profitability of the Community industry reaching
losses as high as 4% of turnover.

(59) Based on the above, there is a clear coincidence in time, in particular as from 1997,
between the deterioration of the situation of the Community industry and the surge of
low-priced dumped imports from the countries concerned. Indeed, when faced with
high volumes of dumped imports originating in the countries concerned,
the
Community industry lost sales volume and market share and had thus no choice but to
follow the fall in prices caused by the dumped imports.

(60)

The above facts and considerations demonstrate that low-priced dumped imports had a
significant negative impact on the economic situation of the Community industry, in
particular on market share, sales volume, sales prices and profitability and have caused
material injury.

3. Development of consumption

(61)

It has been argued that injury to the Community industry was mainly caused by a
dramatic decrease of consumption as a result of a generally declining market. Indeed,
the investigation showed that consumption decreased during the period considered.
The Community market decreased by 30% in terms of volume during the period
considered and by 6% from 1997 up to the IP.

(62) However, the deepened investigation has revealed that the injury suffered by the
Community industry is not the result of a generally declining market. It was found that
what appeared to show a declining market was the result of relocation of the
production of CTVs to certain CEEC (see recitals 63 to 65 below). As the Community
consumption of CTVs, the downstream product incorporating CPTs, even increased
during the period considered (see recitals 66 and 67), such a development of
consumption should not be associated with the decline of prices. Finally it should be
noted that most of the economic indicators pertaining to the Community industry
started to follow a significant decreasing trend at a time when consumption had
stabilised (see recitals 69 to 71), i.e. since 1997.

3.1 Effects of relocation

(63) According to the information available, the relocation process for the production of
CTVs to certain CEEC took place in the first part of the period considered. The effect
of this relocation was that less CPT's were used in the Community and more CPTs
were exported to accommodate the needs of these new production sites.

(64)

From the above it can be concluded that the decrease in Community consumption of
CPTs did not actually point to a general decrease in demand for the product concerned
with the resulting negative effect on sales prices but merely a shift in the geographical
location of the users concerned. Whereas the relocation of CTV manufacturers to the
CEEC may explain to a large extent
the decrease in CPTs consumption in the
Community, its effect has not been a general decrease in the demand for the product.

13

(65)

Therefore, it was concluded that the deterioration in sales prices observed in the
in particular as from 1997, and the
investigation on the Community market,
deterioration in the economic situation of the Community industry cannot be explained
by a general weakness in the overall market for the product concerned.

3.2 Consumption of CTVs in the Community

(66)

In view of the above, and in order to have a complete view and understanding of the
decrease in the Community consumption for CPTs during the period considered, it
was examined how the consumption for CTVs developed during the period from 1995
to 1998. In fact, since CPTs are used in the production of CTVs, the analysis of
Community consumption for CTVs makes the analysis of the Community CPT market
more complete.

Table 6 Consumption of CTVs in the Community

1995

1996

1997

1998

IP

Units

8.292.391 8.070.930 8.342.555 9.276.425 Not

available

Index

100

97

101

111

Source: Market research data for CTVs and EUROSTAT

(67)

(68)

The table clearly shows that Community demand for CTVs increased during the
period considered and in particular in 1997 and 1998.

From the above the conclusion is drawn that the negative development in Community
CPT consumption is not the result of a general declining demand for CTVs, since
demand increased by around 11% from 1995 up to 1998. Therefore, the relocation
cannot hide the fact that the demand for CTVs continued to grow in the Community
indicating that the product concerned is not obsolete.

3.3 Development of consumption as from 1997

(69) As shown in Table 1 and as explained in recital 26 above the most significant decrease
in Community CPT consumption took place in the period 1995 to 1997 (-26%).
However, a rather stable trend of consumption was observed thereafter.

(70)

The deepened analysis has revealed that prices of the Community industry were stable
when consumption significantly decreased (-26% in the period 1995 to 1997) and that
the main price decrease of the Community industry occurred at a time when
consumption was relatively stable (decrease of 6% in the period 1997 to the IP).
Furthermore the economic situation of the Community particularly deteriorated in the
period 1997 to the IP, when the surge of dumped imports took place (+291% in import
volume and 8 percentage points in market share) and sales by the Community industry
fell by 26% and it lost 7,9 percentage points of its market share. As already shown
above, in this period the average unit price of CPTs sold by the Community industry to
unrelated customers decreased by 19%, production by 15% and profitability by around
4 percentage points. Finally it should be noted that the cost of production of the
Community industry did not increase during the period of decreasing sales. On the

14

contrary, there was as reduction of cost of production by more than 10% between 1997
and the IP.

(71)

From the above it is concluded that the development in Community CPT consumption
cannot explain the deterioration of the economic situation of the Community industry
and the significant increase in both volume of imports and market share of CPT
imports from the countries concerned, in particular in the period from 1997 up to the
IP.

4. Imports into the Community from other third countries

(72)

The total in the table below includes the imports from all countries other than India
and Korea:

Table 7 Imports from other third countries

1995

1996

1997

1998

IP

Lithuania

438.051

549.112

357.202

408.607

373.510

Malaysia

742.235

500.531

271.838

525.015

544.397

Singapore

678.752

814.216

984.267

729.387

480.032

Other

1.096.695

802.426

997.232

676.018

467.133

Total other
countries

third

2.955.733

2.666.285 2.610.539 2.339.027 1.865.072

Index 1995 =100

100

90

Index 1997 = 100

Source: EUROSTAT

88

100

79

90

63

71

(73)

(74)

During the IP, Lithuania, Malaysia and Singapore were the largest exporters to the
Community within this group. As indicated in recital 35 above, the imports from
China were below the de minimis threshold.

The total volume of imports from other third countries decreased by 37% during the
period considered whereas consumption decreased by 30%. In the period from 1997 to
the IP, these imports decreased by 29% whereas consumption only decreased by 6%.

The investigation has shown that during the IP prices charged by most of the operators
located in other third countries on the Community were higher than those charged by
the countries concerned on the Community market. The development of these prices,
according to EUROSTAT, was the following:

15

Table 8 - Import prices

ECU/unit

1995

1996

1997

1998

IP

Lithuania

Malaysia

Singapore

34,97

36,96

38,88

35,40

27,36

44,59

41,68

45,65

43,92

35,53

43,61

41,18

42,63

41,78

40,35

Average import prices

41,46

42,32

42,98

39,94

37,54

Index 1995 =100

100

102

Index 1997= 100

Source: EUROSTAT

104

100

96

93

91

87

(75)

The above table shows that import prices from Singapore were above the level of
those of the Community industry during the IP and that CPT's prices varied
Import prices from Malaysia were
significantly among other
comparable to those charged by the Community industry but
those charged by
exporting producers in Lithuania were lower. On this basis, it cannot completely be
excluded that imports from certain third countries have had a negative impact on the
economic situation of the Community.

third countries.

5. Conclusion on causation

(76)

(77)

In conclusion, it cannot be excluded that factors other than the dumped imports from
the countries concerned, in particular imports from Lithuania, may have contributed to
the injury suffered by the Community industry. However, these factors are not such as
to break the causal link between the injury established and the effects of the dumped
imports concerned, in particular in light of their market share.

This is clearly shown by the substantial negative developments in the economic
situation of the Community industry in particular from 1997 up to the IP. At that time
the surge of imports from the countries concerned took place (+291%) and the
Community industry sales volume fell by 26%. In this period the Community industry
lost 7,9 percentage points of its market share (the countries concerned gained 8
percentage points), its average price decreased by 19%, production by 15% and
significant price
profitability by around 4 percentage points. Furthermore,
undercutting was found during the IP.

(78)

The behaviour of the exporting producers from the countries concerned had material
negative consequences on the situation of the Community industry. It is therefore
confirmed that these imports, taken in isolation, have caused material injury to the
Community industry.

G. COMMUNITY INTEREST

1. Interest of the Community industry

16

(79)

It should be noted that despite the abovementioned relocation of CTV production,
there is still a significant production of CPTs in the Community. Indeed, the increase
of CTV demand points to the fact that the product concerned is not an obsolete
product. It should be noted that the Community industry is viable as can be seen from
its rationalisation processes. The Community industry rationalised and improved its
productivity in recent years, in a successful attempt to lower its cost of production and
to enhance its competitiveness on the market. It is considered that in the absence of
anti-dumping measures the Community industry's prices will continue to decrease
further. This could entail a closure of the CPT activity in the Community and thus
reduce employment in the Community.

2. Impact on importers and users

(80)

Since no comments were received after publication of the provisional Regulation
concerning any potential disadvantage that the anti-dumping measures could bring to
the business of importers and users, the conclusions of recitals 108 to 110 of the
provisional Regulation are confirmed.

3. Conclusion

(81) On the basis of the above facts it was concluded, that there were no compelling
reasons against the imposition of anti-dumping measures concerning imports of the
product concerned from India and Korea.

H. DEFINITIVE MEASURES

(82)

In view of the conclusions reached regarding dumping,
injury, causation and
Community interest, it is considered that definitive anti-dumping measures should be
imposed in order to prevent further injury being caused to the Community industry by
dumped imports from India and Korea.

1. Injury elimination level

(83)

The injury elimination level was calculated using the same methodology as explained
in recital 116 of the provisional Regulation. A non-injurious level of prices was
determined which would cover the Community industry's cost of production and allow
a reasonable profit to be obtained in the absence of dumped imports from the countries
concerned.

2. Form and level of the definitive duty

(84)

In accordance with Article 9(4) of the Basic Regulation, as the injury margins were
higher than the dumping margins found for all the exporting producers concerned, the
definitive duty should be set at the level of the latter margins.

3. Termination of the proceeding

(85)

In view of the findings on imports originating in Lithuania, Malaysia (de minimis
margins of dumping) and China (de minimis market share) the proceeding with respect
to these countries should be terminated.

17

I. COLLECTION AND RELEASE OF THE PROVISIONAL DUTY

(86)

(87)

In view of the magnitude of the dumping margins found for the exporting producers in
India and Korea, and in light of the seriousness of the injury caused to the Community
industry, it is considered necessary that the amounts secured by way of provisional
anti-dumping duty under Regulation (EC) No 837/2000 shall be definitively collected
to the extent of the amount of definitive duties imposed.

In view of the termination of the proceeding with respect to imports originating in
Malaysia and China the amounts secured by way of the provisional anti-dumping duty
on imports originating in these countries under Commission Regulation (EC) No
837/2000 shall be released.

HAS ADOPTED THIS REGULATION:

Article 1

1.
A definitive anti-dumping duty is hereby imposed on imports of cathode-ray
colour-television picture tubes with a diagonal measurement of the screen (i.e. the
active part of the picture tube measured in a straight line) exceeding 33 cm but not
exceeding 38 cm, with a screen width/height ratio less than 1,5, and with a pitch (i.e.
the gap between two lines of the same colour at the centre of the screen) of not less
than 0,4 mm, originating in India and the Republic of Korea, falling within CN code
ex 8540 11 11 (TARIC code 8540 11 11 * 94).

The rate of the definitive anti-dumping duty applicable to the net free-at-

2.
Community-frontier price, before duty shall be as follows:

Country

Rate of duty (%)

India

Republic of Korea

20,5

19,7

Unless otherwise specified, the provisions in force concerning customs duties

3.
shall apply.

Article 2

The proceeding concerning imports of cathode-ray colour-television picture tubes as
defined under Article 1 paragraph 1, originating in Lithuania, Malaysia and the
People’s Republic of China shall be terminated.

18

Article 3

1.
The amounts secured by way of the provisional anti-dumping duty on imports
originating in India and the Republic of Korea under Commission Regulation (EC)
No 837/2000 shall be collected at the rate of the duty definitively imposed by this
Regulation. Amounts secured in excess of the rate of the definitive anti-dumping
duty shall be released.

The amounts secured by way of the provisional anti-dumping duty on imports
2.
originating in Malaysia and the People's Republic of China under Commission
Regulation (EC) No 837/2000 shall be released.

Article 4

This Regulation shall enter into force on the day following that of its publication in
the Official Journal of the European Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member
States.

Done at Brussels,

For the Council
The President

19